GEOFFREY Some information that has come out today
Sunday March 16 4:37 PM EST
Compaq Computer Corp shares may be overvalued -
Barron's
NEW YORK, March 16 (Reuter) - Shares of Compaq Computer Corp may be overvalued
because of slowing demand among computer retailers and resellers, Barron's said in its "Up and
Down Wall Street" column.
That slowing demand may hit Compaq and other computer makers, the magazine said.
Compaq's shares closed Friday at 78-1/4.
The magazine said that about 20 percent of Compaq's domestic revenue, for example, comes from
computer reseller Compucom Systems Inc , which said Friday it anticipates softness in sales growth
for the first quarter, resulting in lower-than-expected earnings.
"The only clear inference, then," Barron's said of the CompuCom news, "is that Compaq has got to
be hurting some, too." The magazine added that Compaq's shares are "still selling at a price that
doesn't square with what's happening in the PC business."
Friday March 14 1:39 PM EST
CompuCom( Compucom Systems Inc )says Q1 earnings
below expectation
DALLAS, March 14 (Reuter) - CompuCom Systems Inc said Friday it anticipates softness in sales
growth for the first quarter of 1997, resulting in lower-than-expected earnings.
The First Call estimate for the quarter, which ends March 31, is $0.12 a share.
The company said it currently expects first quarter revenue to be between $425 million and $450
million, with product growth essentially flat and service growth of about 60 percent compared to the
year-earlier period.
CompuCom said it believes the slowdown in product growth is temporary, with customers
postponing projects due to smaller-than-expected manufacturer price cuts and confusion over which
processor to buy. Both of these issues, said the company, should be resolved is the next quarter.
The company also said that it expects the impact of its first-quarter revenue shortfall to be mitigated
by strong service growth and lower expenses.
CompuCom is a provider of distributed desktop products and network integration services for large
corporate customers.
Friday March 14 12:14 PM EDT
CompuCom Sees Softness in Product Sales Growth
DALLAS--(BUSINESS WIRE)--March 14, 1997-- Compucom Systems Inc , a leading provider
of distributed desktop products and network integration services, announced it sees a softness in
product sales growth for the first quarter of 1997.
"CompuCom's product sales have been soft throughout the quarter, resulting in a need to adjust
guidance for our first quarter revenue estimate," said Edward R. Anderson, president and CEO of
CompuCom. "We are currently at a run rate for our first quarter total revenue to be in the
$425-$450 million range with product growth essentially flat and service growth of approximately
60% when compared to the same period in 1996. We believe the slow down in product growth is
temporary. We think customers have postponed projects due to smaller manufacturer price cuts
than expected and confusion over which processor to buy. Both of these issues should be resolved
during the next quarter.
"The revenue shortfall will result in our earnings for the first quarter of 1997 falling below
expectations, although we expect that shortfall to be somewhat mitigated by strong service growth
and lower expenses."
CompuCom Systems, Inc., headquartered in Dallas, Texas is a leading provider of distributed
desktop products and network integration services for large corporate customers worldwide.
CompuCom's services include LAN/WAN projects and consulting, network management, help
desk, field engineering, configuration, distribution and procurement. CompuCom is accessible via the
Internet at www.compucom.com .
This press release contains certain forward-looking statements regarding revenues, margins,
earnings, growth rates and certain business trends that involve risks and uncertainties that could
cause actual results to differ materially from the results discussed herein. Recipients of this press
release are cautioned to consider these risks and uncertainties and to not place undue reliance on
these forward-looking statements.
CONTACT: CompuCom Systems, Inc., Dallas
Edward R. Anderson or M. Lazane Smith, 214/265-3600
THIS ABOUT SUMS IT UP!!!!
|
